Furious California shoppers sounded off about the situation inside their state after feeling the bite of yet another round of store closures. This time, the stores closing are hundreds of 99 Cents Only stores, the company behind which announced that closures would be happening starting in early April and take place across the Southwest.
As background, the 99 Cents Only company was founded in California in 1982, and its headquarters was in Commerce, California. It soon expanded across the region int states like Nevada, Texas, and Arizona. Now, however, that’s over and the stores are being shuttered.
Specifically, 371 stores across California, Nevada, Texas, and Arizona are closing, the vast majority of which, 265, are in California. After the closures were announced, some state residents took to blaming California Governor Newsom, alleging that his policies have made the Golden State a difficult place to do business, particularly retail.
One shopper, for example, 53-year-old Rick Juarez, told the Los Angeles Times that he shopped at one of the stores for two decades and that he holds Newsom responsible for its closure. He said, “I blame [Gavin] Newsom.” He continued, “Too many taxes, too high the minimum wage. These companies just can’t compete, and so they have to close. And it’s poor people like us who end up suffering.”
Another shopper, Altagracia Nuñez, told the Los Angeles Times, that the store’s low prices were how she could afford school supplies and groceries for her family, saying, “I could buy toys for my younger kids, my older kids could get pens for school, and I could do groceries for all of us. And the prices, of course.” She added, “Well, everything is more expensive nowadays, so I guess this had to end.”
Similarly, Victor Barrios, 38, said, “This needs to stay open.” He continued, explaining how people on limited or fixed incomes need low-priced goods to stay alive, saying, “I make OK money, and buying here helps me. But imagine if you’re on WIC? If you’re on Social Security? You need a place like this. Are people now supposed to go to Ralphs? Or Target? With what money?”
Mike Simoncic, the Interim Chief Executive Officer of 99 Cents Only Stores, explained that the stores had to close, blaming things like inflation and “shrink,” or retail theft, for the necessity of the closures. He said, “Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the Company’s ability to operate.”
99 Cents Only Stores, in a press release, explained, “99 Cents Only Stores, together with its financial and legal advisors, engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue.” It continued, “Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets.”
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